IGT reports $260M profit in Q1; announces $1.2B sale of Italian B2C units

IGT POSTED a $260 million profit in the first quarter of 2021. / PBN FILE PHOTO RUPERT WHITELEY

PROVIDENCE – International Game Technology PLC reported a $260 million profit in the first quarter that follows a $218 million loss one year prior, the company said Tuesday.

Revenue totaled $1 billion, a rise from $814 million in the first quarter of 2020.

“We delivered some of our strongest profit results ever during the first quarter, fueled by robust player demand and significant, structural cost savings,” said Marco Sala, CEO of IGT. “Our global lottery segment achieved record same-store sales levels on impressive increases around the world. The global gaming segment is demonstrating swift, progressive recovery, including accelerated momentum for digital & betting activities. We expect to return to 2019 levels for key financial metrics this year.”

The company’s global lottery segment had $749 million in revenue for the quarter, a 48% increase year over year. The global gaming segment reported $266 million in revenue, a 14% decline year over year.

- Advertisement -

“With the recovery in our business in full swing, we are delivering strong operating leverage which, when coupled with invested capital discipline, drove strong cash flows in the quarter,” said Max Chiara, chief financial officer of IGT. “This enabled us to accelerate our debt retirement strategy and gives us confidence in a return to pre-pandemic leverage levels by the end of the current year.

The company also said Tuesday that it had completed the sale of two gaming businesses, Lottomatica Videolot Rete S.p.A. and Lottomatica Scommesse S.r.l., to Gamenet Group S.p.A. for roughly $1.2 billion.

Gamenet Group is a subsidiary of funds managed by an affiliate of Apollo Global Management Inc., accoriding to IGT.

The two units were responsible for IGT’s business-to-consumer gaming machine, sports betting, and digital gaming businesses in Italy, the company said.

IGT said that it will use proceeds from the sale to pay transaction expenses and reduce debt.

No posts to display